(1) The Department of Revenue shall assess a penalty of $250 against any individual who files what purports to be a return of the tax imposed by this chapter but which:

Terms Used In Oregon Statutes 316.992

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Department: means the Department of Revenue. See Oregon Statutes 316.022
  • Individual: means a natural person, including aliens and minors. See Oregon Statutes 316.022
  • Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
  • Taxable income: means the taxable income as defined in subsection (a) or (b), section 63 of the Internal Revenue Code, with such additions, subtractions and adjustments as are prescribed by this chapter. See Oregon Statutes 316.022

(a) Does not contain information on which the substantial correctness of the self-assessment may be judged; or

(b) Contains information that on its face indicates that the self-assessment is substantially incorrect.

(2) A penalty may be imposed under subsection (1) of this section only if the conduct referred to in subsection (1) of this section is due to:

(a) A position which is frivolous; or

(b) An intention, apparent on the face of the purported return, to delay or impede the administration of the income tax laws of this state.

(3) The penalty imposed under this section is in addition to any other penalty imposed by law. Any person against whom a penalty is assessed under this section may appeal to the tax court as provided in ORS § 305.404 to 305.560. If the penalty is not paid within 10 days after the order of the tax court becomes final, the department may record the order and collect the amount assessed in the same manner as income tax deficiencies are recorded and collected under ORS § 314.430.

(4) If an assessment of tax due for the taxable year with respect to which a penalty is imposed under this section is under appeal at the same time that an appeal is filed under this subsection, the tax court may consolidate the appeals into a single proceeding.

(5) As used in this section, ‘a position which is frivolous’ includes, but is not limited to:

(a) Reference to a spurious constitutional argument;

(b) Reliance on a ‘gold standard’ or ‘war tax’ deduction;

(c) An argument that wages or salary are not includable in taxable income;

(d) An argument that the Sixteenth Amendment to the United States Constitution was not properly adopted; or

(e) An argument that ‘unenfranchised, sovereign, freemen or natural persons’ are not subject to the tax laws. [1987 c.843 § 11; 1995 c.650 § 39]

 

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